This course extends foundational concepts in life contingencies to analyze complex life insurance and health insurance products. Topics include policy valuation using prospective and recursive methods, Thiele’s differential equation, modified premium reserves, and multiple decrement models. A major focus is on multiple state models (MSMs), including Kolmogorov forward equations and applications in disability, long-term care, and critical illness insurance. We also explore joint-life policies, both dependent and independent, and examine premium and benefit calculations under various structures.
This course examines how actuaries and risk managers address the challenges posed by uncertain mortality and increasing longevity. It introduces a broad range of models and methods for analyzing mortality data, estimating mortality models, and forecasting future mortality trends. Drawing on insights from recent events, such as the COVID-19 pandemic, the course emphasizes practical strategies for managing longevity risk. Topics include the design and pricing of mortality-linked securities, construction of hedging strategies, and evaluation of insurance-based and capital market solutions.